Security CodeS-17 CS Daisen-choPower Plant (A&B)

Asset Manager
Canadian Solar Asset management K.K.

10th FP（ended June 2022）

Presentation Materials

Canadian Solar Infrastructure Fund, Inc.

Table of Contents
3. Management Policy・・・・・・・・・・

1. Financial Highlights ・・・・・・・・・

2

Financial Highlights of 10th FP ・・・・・・・・・・・・・

3

11th, 12th & 13th FP Business Forecast

Portfolio Performance ・・・・・・・・・・・・・・・・・

4

Historical and Forecasted Dividend・・・・・・・・・・・・

Asset List ・・・・・・・・・・・・・・・・・・・・・・・

8

2. Major Topics ・・・・・・・・・・・・・

10

AUM Snapshot ・・・・・・・・・・・・・・・・・・・・・

11

Portfolio Diversification ・・・・・・・・・・・・・・・・・

12

Unit Price Performance ・・・・・・・・・・・・・・・・・

13

Debt Profile (1) ・・・・・・・・・・・・・・・・・・・・

14

Debt Profile (2) ・・・・・・・・・・・・・・・・・・・・

15

Bank Formation ・・・・・・・・・・・・・・・・・・・・

16

Impact of Curtailment and Installing
Online Curtailment Controller・・・・・・・・・・・・・・

17

ESG Initiatives (UN PRI / Wholesale Electricity
Supply) ・・・・・・・・・・・・・・・・・・・・・・・・

18

ESG Initiatives (TCFD・SFDR) ・・・・・・・・・・・・・

19

ESG Initiatives (Green Finance) ・・・・・・・・・・・・・

20

Aim for Further Diffusion of Renewable Energy drawing on
Positive Stance of the Japanese Government・・・・・

21

Main Points of the Revised Renewable Energy Act (1)・・

22

Main Points of the Revised Renewable Energy Act (2)・・

23

Main Points of the Revised Renewable Energy Act (3)・・

24

The Merger Proposal of Renewable Japan Energy
Infrastructure Fund and Canadian Solar Infrastructure
Fund・・・・・・・・・・・・・・・・・・・・・・・・・・

25

・・・・・・・・

External Growth Strategy（Pipeline） ・・・・・・・・・・
Abundant Pipeline Centered on Sponsor-Developed Assets
Assisting CSIF’s Growth ・・・・・・・・・・・・・・・・・

26
27
28
29
30

Appendix ・・・・・・・・・・・・・・・

31

Canadian Solar Group’s Global Operations (2) ・・・・・・

32
33

Canadian Solar Group’s Global Operations (1) ・・・・・・
Value Creation using the Sponsor Group’s VerticallyIntegrated Model (manufacturer, developer, AM・O&M) ・34

Organizational Structure・・・・・・・・・・・・・・・・・

35

Asset List– Operational Result for 10th FP・・・・・・・・

36

ESG Initiatives (Environment) ・・・・・・・・・・・・・・

38
39
40
41
42
43
44
46
47

ESG Initiatives (Social)・・・・・・・・・・・・・・・・・
ESG Initiatives (Governance)・・・・・・・・・・・・・・
Status of Unitholders ・・・・・・・・・・・・・・・・・・
Balance Sheet for 10th FP・・・・・・・・・・・・・・・・
Statement of Income for 10th FP ・・・・・・・・・・・・
Portfolio Assets ・・・・・・・・・・・・・・・・・・・・・
Acquisition of assets from third-parties・・・・・・・・・・
Leasing Structure based on Basic and Valuable Rent ・・・
Stable and Balanced Cash Flow Distribution Policy
Supported by FIT System ・・・・・・・・・・・・・・・・
Characteristics of PV Plant Revenue ・・・・・・・・・・・
Overview of Output Curtailment・・・・・・・・・・・・・
Disclaimer ・・・・・・・・・・・・・・・・・・・・・・・

48
49
50
51

1

1. Financial Highlights

2

Financial highlights of 10 th FP
 Operating revenues of the 10th FP exceeded the initial forecast with actual energy output of portfolio exceeding
the forecast due to continuous favorable weather from January to June 2022
 The impact of curtailments on operating revenues was reduced to a certain extent due to a significant decreasein the number of curtailments compared to the same period last year, as well as the accelerated installation of
online curtailment controllers
 As a result, net income exceeded the initial forecast by JPY 335 million, which contributed to a JPY 153
increase from the initial forecast in distributions per unit to JPY 3,903 (Composed entirely of profit distribution).
9th FP
Actual10th FP (ended Jun. 2022)
Forecast@Feb.14,2022

Amendment@Jun.20,2022

Increase /(Decrease)(vs Forecast)

ActualStatement of Income Data
(million yen)
Operating revenues

3,587

3,704

3,920

4,060

356

Operating income

1,344

1,388

1,611

1,743

355

Income before income taxes

1,123

1,174

1,369

1,509

334

Net income

1,122

1,174

1,368

1,509

335

3,750

3,750

3,800

3,903

153

2,902

3,036

3,540

3,903

867

848

714

260

-

(714)

Distribution per unit (including
distributions in excess of earnings)(yen)Distributions per unit (excluding
distributions in excess of earnings)(yen)Distributions in excess of earnings
per unit (yen)Main difference (vs. forecast)
Operatingrevenues

Increase in variable
rent

Operatingexpenses

Decrease in IR
expenses
Decrease inprofessional fees

Non-operating
Loss on retirement ofincomes andfixed assets
expenses

356

4
3

(26)

3

Portfolio Performance Actual energy output in the 10th FP exceeded the initial forecast in all months, due to the high irradiation
resulted by generally fine weather from January to June and the impact of curtailment was less than theprevious year
 10th FP actual energy output ÷ projected energy output = 108.23%(8th FP (corresponding period of the previous year): 100.49%)

 Total energy output
Projected(MWh)25,00015,000108.3%

107.6%

20,000107.6%
19,37018,00914,646

13,524

13,241

12,304

Actual109.7%

102.7%
21,562

20,989114.0%

23,37721,31020,246

17,756

10,000
5,000
0

Jan.

Feb.

 Energy output by projectS-01 CS Shibushi-shi
Power Plant

Apr.

May

S-02 CS Isa-shi
Power Plant

150

150

100

100

50

50
Jan.

Feb.

Mar.

Apr.

May

0

Jun.

(MWh)

S-04 CS Isa-shi Dai-niPower Plant

300

100

100
Feb.

Mar.

Apr.

May

Jun.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

300
200

Jan.

Jan.

(MWh)

200

0

Jun.

(MWh)

(MWh)

0
S-03 CS Kasama-shi
Power Plant

Mar.

0

4

Portfolio Performance
S-05 CS Yusui-cho
Power Plant

S-06 CS Isa-shi Dai-sanPower Plant

(MWh)
300

200

100

100
Feb.

Mar.

Apr.

May

0

Jun.

S-08 CS Hiji-machi
Power Plant

300

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

400
300

100

200
100
Jan.

Feb.

Mar.

Apr.

May

0

Jun.
S-10 CS Minami
Shimabara-shi
Power Plant (East & West)

(MWh)
300

(MWh)
600

200

400

100

200
Jan.

Feb.

Mar.

Apr.

May

0

Jun.

(MWh)

S-12 CS Kannami-cho
Power Plant

300

(MWh)
200
150

200

100

100
0

Jan.

(MWh)

200

0

S-11 CS Minano-machi
Power Plant

Jan.

(MWh)

0

S-09 CS Ashikita-machi
Power Plant

300

200

0

S-07 CS Kasama-shi
Dai-ni Power Plant

(MWh)

50
Jan.

Feb.

Mar.

Apr.

May

Jun.

0

5

Portfolio Performance
S-13 CS Mashiki-machi
Power Plant(MWh)

S-14 CS Koriyama-shi
Power Plant

6,000

50

2,000

S-15 CS Tsuyama-shi
Power Plant

25
Jan.

Feb.

Mar.

Apr.

May

0

Jun.

(MWh)

S-16 CS Ena-shi
Power Plant

300
200

Jan.

Feb.

Mar.

Apr.

May

Jun.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

(MWh)
300

0

S-18 CS Takayama-shi
Power Plant

(MWh)
4,000
3,000

150

50

1,000
0

(MWh)

100

2,000

Jan.

Feb.

Mar.

Apr.

May

0

Jun.

(MWh)

S-20 CS Marumori-machi
Power Plant

150

(MWh)
300

100

200

50

100

0

Feb.

100

0

S-19 CS Misato-machi
Power Plant

Jan.

200

100

S-17 CS Daisen-choPower Plant (A&B)

100
75

4,000

0

(MWh)

Jan.

Feb.

Mar.

Apr.

May

Jun.

0

6

Portfolio Performance
S-21 CS Izu-shi
Power Plant

S-22 CS Ishikari
Shinshinotsu-muraPower Plant

(MWh)
1,500

200

500

S-23 CS Osaki-shi
Kejonuma Power Plant

100
Jan.

Feb.

Mar.

Apr.

May

0

Jun.

(MWh)

S-24 CS Hiji-machi Dai-niPower Plant

150

50

2,500
Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

7,500
5,000

Jan.

Jan.

(MWh)

100

0
S-25 CS Ogawara-machi
Power Plant

400
300

1,000

0

(MWh)

0

(MWh)
1,000
800
600
400
200
0

7

Asset List – Power Plant Data, Valuation and etc.
No.

Project nameLocation

Acquisition Valuation Price
Portfolio
Price(million yen)%(million yen)
(Note)

Panel
Output(kW)

FIT Price Electric Power
service area(yen)

Curtailment
rules

Onlinecurtailment
system status

S-01 CS Shibushi-shi Power Plant

Shibushi-shi,
Kagoshima

540

494

0.6%

1,224.00

40

Kyushu30-day rule○

S-02 CS Isa-shi Power Plant

Isa-shi, Kagoshima

372

329

0.4%

931.7740

Kyushu30-day rule○

S-03 CS Kasama-shi Power Plant

Kasama-shi, Ibaraki

907

921

1.2%

2,127.84

40

Tokyo

30-day rule

S-04 CS Isa-shi Dai-ni Power Plant

Isa-shi, Kagoshima

778

683

0.9%

2,013.99

36

Kyushu30-day rule○

S-05 CS Yusui-cho Power Plant

Aira-gun, Kagoshima

670

589

0.8%

1,749.30

36

Kyushu30-day rule○

S-06 CS Isa-shi Dai-san Power Plant

Isa-shi, Kagoshima

949

845

1.1%

2,225.08

40

Kyushu30-day rule○

S-07 Plant

Kasama-shi, Ibaraki

850

795

1.0%

2,103.75

40

Tokyo

30-day rule

S-08 CS Hiji-machi Power Plant

Hayami-gun, Oita

1,029

913

1.2%

2,574.99

36

Kyushu30-day rule○

S-09 CS Ashikita-machi Power Plant

Ashikita-gun,
Kumamoto

989

891

1.2%

2,347.80

40

Kyushu30-day rule○

S-10 Plant (East & West)

CS Minamishimabara-shi Power

Shimabara-shi,
Nagasaki

1,733

1,610

2.1%

3,928.86

40

Kyushu30-day rule○S-11 CS Minano-machi Power Plant

Chichibu-gun,
Saitama

1,018

1,024

1.3%

2,448.60

32

Tokyo

30-day ruleS-12 CS Kannami-cho Power Plant

Tagata-gun,Shizuoka

514

504

0.7%

1,336.32

36

Tokyo

30-day ruleS-13 CS Mashiki-machi Power Plant

Kamimashiki-gun,
Kumamoto

19,751

19,99426.2%

47,692.62

36

Kyushu30-day ruleS-14 CS Koriyama-shi Power Plant

Koriyama-shi,
Fukushima

246

227

0.3%

636.0032

Tohoku30-day rule

S-15 CS Tsuyama-shi Power Plant

Tsuyama-shi,
Okayama

746

680

0.9%

1,930.50

32

Chugoku

30-day rule

CS Kasama-shi Dai-ni Power(Note)“Price” refers to the median project valuation report amount, which is the estimated values provided to us by PricewaterhouseCoopers
Sustainability LLC (S01 – S18) and Kroll, LLC (S-19 – S-25) in its project valuation reports as of June 30, 2022.

○

○

8

Asset List – Power Plant Data, Valuation and etc.
No.

Project name

S-16 CS Ena-shi Power Plant

Location
Ena-shi, Gifu

S-17 CS Daisen-cho Power Plant(A)(B) Saihaku-gun, Tottori

Acquisition Valuation Price
Portfolio
Price(million yen)%(million yen)
(Note)

757

746

10,447

9,320

1.0%

Panel
Output(kW)2,124.20

12.2% 27,302.40

Electric
Power
service area

Curtailment
rules

Onlinecurtailment
system status

Chubu

360-hour rule○

40 Chugoku

30-day rule

13th FP(Scheduled)○

FIT Price
(yen)

32

S-18 CS Takayama-shi Power Plant

Takayama-shi, Gifu

326

294

0.4%

962.2832

Chubu

360-hour ruleS-19 CS Misato-machi Power Plant

Kodama-gun,
Saitama-ken

470

413

0.5%

1,082.88

32

Tokyo

30-day ruleS-20

Igu-gun, Miyagi

850

738

Izu-shi, Shizuoka

4,569

4,091

Ishikari-gun,
Hokkaido

680

599

0.8%

2,384.64

S-23 Plant

Osaki-shi, Kejonuma

208

193

0.3%

954.99S-24

CS Hiji-machi Dai-ni Power Plant

Hayami-gun, Oita

27,851

26,781

S-25

CS Ogawara-machi Power Plant

Shibata-gun, Miyagi

CS Marumori-machi Power Plant

S-21 CS Izu-shi Power Plant
CS Ishikari Shinshinotsu-mura

S-22 Power Plant

CS Osaki-shi Kejonuma Power

Total(Note)

2,745

2,687

80,001

76,365

2,194.50

36

TohokuUnlimited andUncompensatedrule

5.4% 10,776.80

36

Tokyo

30-day rule

1.0%

35.1% 53,403.66

Unlimited and24 Hokkaido Uncompensatedrule
Unlimited and
21 Tohoku Uncompensated
rule
40

○
○

30-day rule○○

7,515.35

32

Tohoku100.00% 183,973.12

-

-

-

“Price” refers to the median project valuation report amount, which is the estimated values provided to us by PricewaterhouseCoopers
Sustainability LLC (S01 – S18) and Kroll, LLC (S-19 – S-25) in its project valuation reports as of June 30, 2022.

13th FP(Scheduled)

KyushuUnlimited andUncompensated
rule

3.5%

○

-

9

2. Major Topics

10

AUM Snapshot
 A summary of AUM as of the end of 10th FP. The fund has 25 power plants with total panel output of 184
MW and the total acquisition price is approximately ¥80Bn, which maintains the largest scale among thelisted infrastructure funds
 Historical valuation and book value(after depreciation)<Portfolio as of the end of 10th FP># of projects

Panel output
of AUM(Note)(JPY billion)

Total acquisition
price as of theend of 10th FP

25 projects¥80.00 Bn

Total valuation
price(Note) as ofthe end of 10th FP

183.9 MW¥76.36 Bn

80.00
70.00
60.00
50.00
40.00
30.00
20.00

Valuation price

33.86

30.44 31.11

CS Mashiki-machi
PP

CS Mashiki-machi
PP

Acquired 13 projects with
72.7MW total panel output

2nd FP acquisitions
Acquired 2 projects with
2.5MW total panel output

40

0

76.36

75.27 73.86 72.41

46.47 45.57 45.35

0.99

CS Hiji-machi DaiNi PP

Acquired 3 projects with
30.3MW total panel output

4th FP acquisitions

5th FP acquisitions

7th FP acquisitions

Acquired 2 projects with
3.2MW total panel output

Acquired 1 project with
10.7MW total panel output

Acquired 2 projects with
3.3MW total panel output

1.32

31.10

IPO

2nd Fiscal Period
第2期…
(period-ended
June 2018)

42.63

43.95

48.52

3rd Fiscal Period
第3期…
(period-ended
December 2018)

4th Fiscal Period
第4期…
(period-ended
June 2019)

5th Fiscal Period
第5期…
(period-ended
December 2019)

48.52

6th Fiscal Period
第6期…
(period-ended
June 2020)

CS Ogawara-machi
PP

2 projects have beenacquired with 60.9MW total
panel output

30.59

0.89

4.57

11.53

30.11
上場時…
Oct 2017

Second PO (Mar. 2021)

First PO (Sep. 2018)

IPO acquisitions (Oct. 2017)8020

42.07 42.67

51.49 49.58 48.89

79.03 77.17“Price” refers to the median project valuation report amount, which is the estimated values provided to us by PricewaterhouseCoopers Sustainability LLC andKroll, LLC in its project valuation reports as of June 30, 2022.

(100Mn yen)

60

47.09

35.96

 Track Record of Consistent External Growth (acquisition price basis)
100

50.02

Book value

80.00

80.00

80.00

8th Fiscal Period
第8期…
(period-ended
June 2021)

9th Fiscal Period
第9期…
(period-ended
December 2021)

10th Fiscal Period
第10期…
(period-ended
June 2022)

100.0

49.40

7th Fiscal Period
第7期…
(period-ended
December 2020)

Note: The medium-term target shown above is CSIF’s target as of June 30, 2022, and does neither represent a guarantee nor promise that the target will be achieved nor when it will beachieved. CSIF’s asset size expansion is dependent on financing environment, development schedule of solar power plants in the sponsor pipeline, acquisition opportunities of projects
outside of the sponsor pipeline, and negotiations with sellers. Hence, there is a possibility that the asset size target may not be achieved.

Medium-term

中期目標
target (Note)

11

Portfolio Diversification
 Since the IPO, CSIF has reduced its concentration risk of projects under management byconsistently acquiring PV projects.
 Aiming to build a portfolio to support stable cashflow with the remaining Decline in ratio of top-3 projects in the portfolio (panel output basis)
As of the end of 7th Fiscal
At IPO
Period-ended Dec. 31, 2020

As of the end of 10th Fiscal
Period-ended Jun. 30, 2022

29.0%

38.8%
3.5%

65.6%

5.4%

14.8%

22.2%
CS Mashiki-machi PP
CS Minami Shimabara-shi PP (east & west)
CS Hiji-machi PP



8.8%

CS Mashiki-machi PP
CS Daisen-cho PP (A & B)
CS Izu-shi PP

25.9%

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP
CS Daisen-cho PP (A & B)

Remaining FIT period of projects-under-management (panel output basis)
(MW)
100
80
60
40
20
0
2022

Projects reaching FIT expiration after 2034
¥40/kWh¥36/kWh¥32/kWh¥24/kWh¥21/kWh

6.0
0.9
2.3

49.0

53.4

FIT period: 12 years
1.2

6.3
11.9

2034

2035

3.0
1.7
2036

27.3
2037

12.9
2038

7.5
2039

2040

12

Unit Price Performance The TSE Listed Infrastructure Fund Index has been on an uptrend from mid-May to mid-June in
response to the announcement on May 12, 2022 that RJ would launch a tender offer for RJIF shares Throughout the 10th FP, CSIF unit prices have been performing almost in line with the TSE Listed
Infrastructure Fund Index. CSIF unit prices declined after the announcement of the completion of thetender offer for RJIF shares on June 24. Nevertheless, it has outperformed the Nikkei Average andthe TSE REIT Index as of the end of June, 2022.
(Yen)

CSIF unit trading volume (right)

CSIF unit price (left)(unit)

130,000

TSE Listed Infrastructure Fund Index (left)

Nikkei 225 (left)

4,000

TSE REIT Index (left)
3,500

125,000

3,000
120,000

2,500
2,000

115,000

1,500

110,000

1,000
105,000

500

100,000
2022/1
Source:Note:2022/22022/32022/42022/5

Tokyo Stock Exchange, Inc.
Weighted average of listed infrastructure funds, Nikkei average, and TSE REIT Index is benchmarked to CSIF’s closing price as of January 4, 2022
and shows the rate of decline since January 4, 2022.

2022/60

13

Debt Profile (1) –LTV, Fixed-to-variable interest rate
ratio, DSCR and Credit Rating

 Employed conservative finance strategies to maintain sound LTV levels and a comfortable level ofborrowing capacity
 CSIF financial profile remains stable as fixed-to-variable interest rate ratio is 100% and DSCR is 2.49
 Submitted a shelf registration statement of investment corporation bonds with the maximum issue amountJPY 20 billion on July 15, 2022
 Fixed-to-variable interest rate ratio and DSCR
Fixed-to-variable interest rate ratio (Note1)

As at end of June 2022

As at end of December 2021

100.00 ％100.00 ％DSCR (Note2)

2.49

2.11

60.00%
55.00%

51.58%

49.78%

50.00%

40.00%

55.52%

53.74%

45.00%
As at end of June 2022

As at end of December 2021

 Historical LTV
51.75%
54.31%

51.97%

50.18%

47.00%

44.67%

 Credit Rating
Rating Agency

Japan Credit Rating
Agency, Ltd.
Rating andInvestment
Information, Inc.

Subject to Rating

After Review

Outlook

Renewal Date

Long-term Issuer Rating

A

StableAugust 10, 2022

A-

August 10, 2022

A-

StableJuly 27, 2022st

The 1 Unsecured Investment Corporation Bond (only for Qualified
Institutional Investors)
Long-term Issuer Rating(Note1)“Fixed-to-variable interest rate ratio” refers to the ratio of fixed interest rate liabilities to total interest-bearing liabilities at that time. Variable interest rate liabilities that were converted to fixedinterest rate liabilities through interest rate swap agreements were deemed as fixed interest rate liabilities(Note2） “DSCR” stands for Debt Service Coverage Ratio and refers to the numerical value calculated by (operating income + depreciations costs + the increased portion of the reserves in our reserve fundfor repair fees ) ÷ (principal repayment + interest)“. DSCR is a multiple of the cash flow before repayments of existing borrowings versus repayment amount of existing borrowings. CSIF believes
that DSCR is a useful indicator that shows how much surplus cash flow is available for repaying existing borrowings.

14

Debt Profile (2) – Summary of Loans and Bonds(As of June 30, 2022)
Category

Type

Initial amount Outstanding(yen millions) (yen millions)Interest rate

Interest Drawdown
date
rate type

Maturity

Fixed

31-Oct2017

10 years from drawdown date
JCR Green FinanceEvaluation

6,376 (fixed at 1.042% upon executing

Fixed

6-Sep201810 years from drawdown date

17,000Base rate plus 0.45%
15,594 (fixed at 0.8199% upon executinginterest rate swap)

Fixed

8-Mar2021

10 years from drawdown date
JCR Green FinanceEvaluation

Sub total of Loan

40,70033,905Longterm

1,100

1,100

0.71%

Fixed

6-Nov20195 years from issuance date

Longterm

3,800

3,800

0.80%

Fixed

26-Jan2021

5 years from issuance date
JCR Green Bond Evaluation

Sub total of Bond

4,900

4,900

Total

45,60038,805Loan

Bond

Base rate plus 0.45%

Longterm

15,70011,934 (fixed at 0.845% upon executing

Longterm

8,000

Longterminterest rate swap)

Base rate plus 0.45%
interest rate swap)

15

Bank Formation■ Organized stable Bank Formation with 23 financial institutions including 3 Mega Banks, Shinsei Bank andSumitomo Mitsui Trust Bank appointed as the Arrangers and Co-Arrangers
LenderBalance（JPY million）

Share（%）

Shinsei Bank, Limited

4,466

13.2%

Sumitomo Mitsui Banking Co.

3,782

11.2%

MUFG Bank, Ltd.

3,590

10.6%

The Nanto Bank, Ltd

2,807

8.3%

Mizuho Bank, Ltd.

2,376

7.0%

Asahi Shinkin Bank

1,926

5.7%

Hiroshima Bank, Ltd.

1,778

5.2%

Resona Bank, Limited

1,368

4.0%

The Oita Bank, Ltd.

1,326

3.9%

The Tottori Bank, Ltd.
Sumitomo Mitsui Trust Bank,
Limited.
The Chugoku Bank, Ltd.

1,284

3.8%

1,236

3.6%

1,236

3.6%

The 77 Bank, Ltd.

963

2.8%

The Ashikaga Bank, Ltd

821

2.4%

Orix Bank Corporation

760

2.2%

The Shonai Bank, Ltd.

684

2.0%

The Tochigi Bank, Ltd.

684

2.0%

The Bank of Saga, Ltd.

642

1.9%

The Senshu Ikeda Bank, Ltd.

642

1.9%

The Bank of Nagoya, Ltd.

642

1.9%

The Fukuho Bank, Ltd.

458

1.4%

The Bank of Fukuoka, Ltd.

275

0.8%

San ju San Bank, Ltd.

152

0.4%

Shinsei Bank, Limited
13.2% 13.2%
新生銀行

Sumitomo Mitsui
三井住友銀行Banking
Co.
11.2%
11.2%
Sumitomo Mitsui
三井住友信託銀行
TrustBank, Limited
3.6%3.6%

Total Debt
(33.9 billion yen)
三菱UFJ銀行
MUFG Bank, Ltd.
10.6%
10.6%

MizuhoBank, Ltd.
みずほ銀行
7.0%7.0%

16

Impact of Curtailment and Installing
Online Curtailment Controller■ Impact of curtailment on CSIF

Number of days of curtailment
Number of times CSIF power
plants underwent curtailment
Estimated variable rent losses(thousand Yen)
Ratio of estimated variable
rent losses to projected rental
revenues

3rd Fiscal Period(period-ended
Dec. 2018)

4th Fiscal Period(period-ended
Jun. 2019)

5th Fiscal Period(period-ended
Dec. 2019)

6th Fiscal Period(period-ended
Jun. 2020)

7th Fiscal Period(period-ended
Dec. 2020)

8th Fiscal Period(period-ended
Jun. 2021)

9th Fiscal Period(period-ended
Dec. 2021)

10th Fiscal Period(period-ended
Jun. 2022)

8 days48 days

13 days

71 days

2 days90 days

22 days

41 days

12

117

21

249

1

206

96

136

3,833

32,545

3,750

58,13095

320,420

91,821

114,722

0.21%

1.54%

0.17%

2.47%

0.004%

9.47%

2.46%

3.10%

 In the 10th FP, decrease in curtailment both in the numbers of days and times from the previous year, along with the completion of theinstallation of online curtailment controllers at power plants in the Kyushu region, had a significant effect on reducing the estimated variable rent
losses compared to those in the 8th FP a year ago

While the impact of curtailment still exists to a certain extent, the impact on the operating status and distributions is
reduced due to various efforts by CSIF

■ Rationale behind installing online curtailment controller
Transition from all-day curtailment to hourly
curtailment with the introduction of online
curtailment controller, it is possible to limit
curtailment to peak hours only.

Hours subject
to curtailment

OutputOffline output curtailment(all-day curtailment)

OutputCurtailment limited
to peak hours only

Full day output curtailment
regardless of peak hours
7am 8am 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm

Online output curtailment(hourly curtailment)Time

7am 8am 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm

Time

CSIF expects to reduce the negative impact of curtailment on its revenue by installing a curtailment controller■ Promotion of installing curtailment controller by Kyushu Electric Power Transmission and Distribution
Co., Inc. and other distributors
Output curtailment had commenced in many grids across Japan; In addition to Kyushu Electric Power Transmission and Distribution Co. Inc.,
Chugoku Electric Power Transmission & Distribution Co. Inc. and YONDEN T & D as of April 2022, and Shikoku Electric Power Transmission
and Distribution Co. Inc., and Hokkaido Electric Power Network, Inc. as of May 2022. CSIF has been actively installing online curtailment
controllers for its projects-under-management in not only the Kyushu power grid, but for projects in other power grids in the Tohoku, Shikoku,
Hokkaido as well as the Chubu power grid which is expected to undergo online output curtailment in the future.

17

ESG Initiatives (UN PRI・Wholesale Electricity Supply) Signatory to UN PRI and Formulation of the “Approach to the UN PRI” by CSAM

As of August 13, 2019, CSAM became the first Japanese asset manager of alisted infrastructure fund to be a signatory to the UN PRI (United Nations
supported Principles for Responsible Investment) to promote ESG(Environmental, Social and Governance) investments.



After signing the UN PRI, CSAM developed the " Approach to UN PRI" as its
basic ESG policy as of the end of December 2020, is disclosed on the CSIF's
website.

 Power sales with premium to renewable energy users through a Wholesale Electricity Supply
Agreement with UPDATER, Inc. and Zero Watt Power Inc.


By executing the wholesale electricity supply agreement with UPDATER, Inc (former Minna-denryoku, Inc.) and Zero Watt
Power Inc for CSIF’s power plants listed below, CSIF contributes to supply FIT electricity to consumers.



CSIF has also begun purchasing clean electricity for power plant consumption. Clean electricity derived from renewableenergy sources and FIT electricity to general households and companies that demand clean power from renewable energy
sources, which will contribute to the diffusion of renewable energy. We believe that this will contribute to the spread ofrenewable energy and also to the generation of additional rental revenues.
Power Plant

Counter Party

Premium Wholesale

Purchase of clean energy

CS Marumori-machi PP

UPDATER

From February 2021

From January 2021

CS Izu-shi PP

From February 2021

From March 2021

CS Mashiki-machi PP

From December 2021

From June 2021

From June 2021

From May 2021

CS Hiji-machi Dai-ni PP

From July 2021

From June 2021

CS Ogawara-machi PP

From May 2021

From July 2021

CS Daisen-cho PP (A)(B)

Zero Watt Power

18

ESG Initiatives（TCFD・SFDR）
 The first listed infrastructure fund to conduct disclosures under TCFD guidelines

Task Force on Climate-related Financial Disclosures (TCFD) was established by the
Financial Stability Board (FSB) to promote transparency on climate-related information
disclosures and discuss implementation methods for financial institutions.



On February 14, 2022, CSIF conducted climate-related disclosures in accordance withthe guidelines of the “TCFD Recommendations” released in June 2017 where it isrecommended to categorize disclosures by core elements; “governance”, “strategy”, “riskmanagement” and “metrics and targets”.

 Adherence to EU SFDR Article 8 disclosure requirementsIn order to prevent greenwashing (falsely claiming the sustainability of a particular product) and to create a more transparent
playing field for ESG investors in their investment decision-making, EU SFDR was created for the purpose of enhancing
transparency of sustainable investment.

Disclosure covers all information relevant to policies on sustainability risk, sustainability of financial products, and ESG factors.



CSIF is scheduled to conduct SFDR Article 8 disclosure requirements of pre-defined ESG (environmental, social, governance)
factors.
Article 6

Article 8

Article 9

All products not covered by
Article 8 or Article 9

Products promoting
environmental or social
characteristics

Products designed tosustainable investments or
reducing carbon emissions

CSIF

19

ESG Initiatives (Green Finance)
 CSIF devised a new Green Finance Framework which obtained a Green1(F) assessment from
JCR, the highest assessment rating as of May 11, 2020 and the rating is maintained.
JCR, Shinsei
Green Loan
Assessment

Stakeholders

Reporting onfund allocation
andenvironmental
improvement

Anticipatedacquisitions

1

IPO acquisitions

2

Acquisitions after IPO

3

Anticipatedborrowings(Green loan)

JCR
Shinsei Bank

Borrowings(Green loan)

Financial institutions

Investment
corporation
bonds (Green bond)

Bond investors

Green1(F)12(highest JCR evaluation)

CSIF obtained a Green1 (the highest rating) assessment from JCR and a Shinsei Green Loan Assessment from Shinsei Bank, Limited, which is one
of CSIF’s arranger banks, for the borrowings of 17.0 billion yen allocated towards acquisitions during the 8th Fiscal Period (acquired on March 8,2021) . Also, after JCR’s review, the borrowings continued to be assessed as Green1 as of June 30, 2022.

The borrowings amounting to 15.7 billion yen which was allocated towards the funds for acquiring the acquisitions for the IPO obtained a Green1 (thehighest rating) assessment by JCR as of November 22, 2017, based on JCR’s evaluation of the use of proceeds and CSIF’s
management/operation/transparency. Also, after JCR’s review, the borrowings continued to be assessed as Green1 as of June 30, 2022.

3 As of January 26, 2021, CSIF issued a 5-year Green Bond of 3.8 billion yen, which was given JCR Green1 assessment and the proceeds will be

used for the repayment of borrowings. Also, after JCR’s review, the Investment corporation bonds continued to be assessed as Green1 as of June 30,
2022.

20

Aim for Further Diffusion of Renewable Energy drawing
on Positive Stance of the Japanese Government According to the 6th Basic Energy Plan approved by the Cabinet in October 2021, the government plans to set the shareof renewable energy as the top source of energy. Also, it seeks to double the ratio of renewable energy (compared to
FY2019 actuals, 18%) by FY2030; somewhere between 36%~38% of the total energy mix.
 Solar power is expected to compose 14%~16% of the total renewable energy mix. Moreover, installed capacity of solar
power by FY2030 is expected to significantly larger than other sources.
Ratio of renewables to total energy mix

100%

80%

Expected installed capacity by renewable energy
sourceRenewable energy

Nuclear

LNG

Coal-fired

Oil thermal, etc.

Hydrogen・Ammonia

7%

3%
26%

（GW）
140

1%
2%

120

19%

32%

Breakdown of renewables
20%

60%

40%

20~22%
Hydraulic11%

20~22%
20%

6%
18%

0%

FY20192019年度Actual実績

36~38%
22~24%
FY2030 Target
FY2030 Target
2030年度政府目標
2030年度政府目標(2015 forecast) （第6次エネルギー基本計画)(6th Basic Energy Plan)（平成27年見通し）

Solar
14~16%

Wind
5%
Geothermal
1%

100
80

Biomass
5%

27%
37%

117.6

Anticipated installed generation capacity until FY2030
2030年度までの発電導入量（見込み）(optimistic estimate)（野心的水準）（野心的水準）Installed generation capacity as of March 20202020年3月時点での発電導入量（実績）(actual)61.8

Installed capacity of solar power is
expected to exceed that of other energy
sources

60

50.7

40
55.8
20

17.9
5.7

0
太陽光
Solar

陸上風力
洋上風力
Wind
power Windpower
(On shore) (Off shore)

8

1.5
地熱
Geothermal

水力
Hydraulic

バイオマス
Biomass

Source: Compiled by the asset manager based on documents by the Strategic Policy Committee of the METI Agency for Natural Resources and Energy Advisory Committee for Natural Resources and Energy

21

Main Points of the Revised Renewable Energy Act (1) Detailed rules and procedures were announced by combined meetings under the leadership of Agency for Natural
Resources and Energy (ANREA) in February of 2021 and after various considerations were conducted, various systems
have been started since April 2022 .
Regulation to maintain cash reserve for power plant demolition costs

Categories subject to the
cash reserve system

All PV operations with FIT/FIP certificates of more than 10 kW or more

Cash reserve method

In principle, PV operators with FIT/FIP certificates put cash reserve for demolition cost on OCCTO by withholding such cash
reserve from incoming electricity revenue. Exceptionally, cash reserve within PV operators shall be permitted under certain
conditions⇒ For listed infrastructure funds internal, cash reserve was permitted as meeting certain requirements above

Cash reserve period

For ten years prior to the end of the FIT period with a monthly frequency

Cash reserve amountFor accredited PV projects whose procurement prices have already been determined by FY2019, the reserve amount is the levelof assumed costs for decommissioning, etc. in the procurement price calculation determined by the Procurement Price
Calculation Committee Non-operational PV Project : Automatic Cancellation of FIT Certificate
 Shall judge the progress status such as application for grid connection work in one year after the operational deadline in case of PV which
has an operational deadline after April 1, 2022
 Shall judge the progress status in one year after April 1, 2022 in case PV of which operational deadline is delayed as of April 1, 2022

FIT/FIP Act “Nullification Rules (Shikko-seido)”
Scenario-1: Legislation
date prior to cut-off
deadline

Rule-1Rule-2Rule-3(exception)

Operational
periodFIT approval

Operational
periodFIT approval

Cut-off
deadline

Caution: Cut-off deadline for nonsolar projects that received FIT
approval between FY2012~2017 isdetermined based on a benchmarked
date (December 12, 2020).

1 year (as of one year after the cut-off deadline, an ICCA (interconnection
construction commencement application) was accepted by the relevant utility)
Approval nullified
End of operational period (as of one year after the cut-off deadline, an ICCA
was accepted by the relevant utility)
Approval nullified
FIT period expiry (as of one year after the cut-off deadline, an ICCA wasaccepted and METI has confirmed the construction plan notice)
Approval nullified after FIT
period expiration

Scenario-2:
Cut-off deadline
expired as of legislation
date

Rule-1Rule-2Rule-3(exception)

Cut-off
deadline

Duration of
approval date tocompletion date
FIT approval

Legislation
date

Deadline expiry

Duration of
approval date tocompletion date
FIT approval

Deadline expiry

1 year(as of one year after completion, an ICCA has not been accepted)
Approval nullified

End of operational period (as of one year after completion, an ICCA wasaccepted)
Approval nullified
FIT period
expiry(as of one year after completion, an ICCA was accepted and METI
has confirmed the construction plan notice)
Approval nullified after FIT
period expiration

22

Main Points of the Revised Renewable Energy Act (2) Overview of FIP system The FIP system allows for the sale of electricity to the wholesale market and arms length transactions as well as paying a premium,the spread between the designated standard price and market price.
 Under the FIP system, buyers are not limited to power distributors of large utility companies and retailers. In addition, the purchaseprice fluctuates depending of the time of day.
Revenue dynamics of FIP system
Revenue aftersubsidy

Anticipated revenue after subsidy(designated standard price <FIP price>)*pre-determined

Difference between FIT and FIP
FIT Power purchased at fixed price Buyers are power distributersof large utility companies

Premium

Power producer

FIP Receive subsidy calculated based onmarket price Buyers are wholesalers and retailers
Power producer

Anticipated revenue
from market transaction(reference price)

Marketprice*linked to fluctuations in
expected revenue frommarket transactions

Designated standard price - reference price =premium

Aggregator
Top utilities

Wholesale market

Retailer

Reference method for anticipated revenue (reference price) of market transactions, etc., and flow of premium allocation

Determination of the average market price for the previous year
－ Calculate the one-year weighted average of spot and pre-market prices by area, taking into account power generation characteristics.



Determination of the unadjusted premium unit price for the current month－Calculate using the formula: "annual average market price for the previous year + monthly adjusted price (= monthly average market price for the current
year - monthly average market price for the previous year)"

Determination of adjusted premium unit price for the current month－Calculate using the formula: premium unit price before adjustment for the current month × total electricity supply for all areas by power source for thecurrent month (incl. 0.01 yen/kWh time slot) divided by total electricity supply for all areas by power source for the current month (excl. 0.01 yen/kWh slot)



Determination of the amount of premium for the current month－Calculate using the formula: adjusted premium unit price for the current month x electricity supply* in the FIP business for the current month(* Amount of renewable electricity generated by certified power generation facilities and supplied on the market during the current month (excl. 0.01 yen/kWh slot )To be determined after taking into account other factors, including premium during the curtailment time, values outside the wholesale electricity market, balancing costs, rules on aggregation business and requirements for shifting FIT to FIP
Source: Agency of Natural Resources and Energy, Ministry of Economy, Trade and Industry Website

23

Main Points of the Revised Renewable Energy Act (3) Discussions on Power Producer-side Wheeling Charge
 Committee consensus on new regulation to levy a 10% consignment charge (based on amount of power generated) on
renewable energy power producers was scheduled to be reached during FY2021, however, the deadline was postponed
for another year.

A Summary ofthe details ofWheeling Charge•

Although discussions with METI on schematics of the wheeling charges proceeded as plannedwith an agenda to reach a decision during FY2021, the Committee decided to postpone theeffective date of the regulation from FY2023 to FY2024.

•

Topics on the agenda included special consideration for existing FIT projects along with method oflevy and calculation models. However, METI described the following comment in the 6th Basic
Energy Plan concerning this issue as “discussions will continue concerning the need for suchtreatment with the goal of implementing it quickly and efficiently”.

•

At a METI Council meeting in Dec. 2021, they said “we want to reexamine this issue in light ofrecent affairs concerning energy and devising an effective implementation method in line with theEnergy Agency’s accelerated progress in renewable energy initiatives”.

Scheme of Wheeling Charge
Power
Producers

Wheeling
Charge10%

Gridoperators

Consignment
ChargeUtilities bill

Retailers

End Users

90%

Wheeling charge shall be properly added to the wholesale price.

24

The Merger Proposal of Renewable Japan Energy Infrastructure
Fund and Canadian Solar Infrastructure Fund
 After the announcement of the TOB by Renewal Japan(RJ) to RJIF, CSAM implemented a merger proposal between CSIF
and RJIF on July 16, 2022.
 As a result of the TOB conducted by RJ was completed on June 23, 2022, this proposal was unsuccessful, but CSAM
believed that the merger proposal was meaningful in that it will further be able to contribute to the development of theinfrastructure fund market.
 Addressing Issues Faced by RJIF and effect of expanding the size of assets through merger
Concerns about acquiring new properties

Issues Faced
by RJIF

Proposal from
CSAM andCSPThe purchase price of renewable energy power generation
facilities has been rising, and in fact, RJIF have not beenable to acquiring new properties in recent years

Inability to expand asset size as required in the medium tolong term, which may affect RJIF's profitability by failing tomaintain an optimal portfolio to increase yields and stabilize
income

The Post-merger Investment Fund can continuously
acquire properties.
1. CS Group's strong and abundant sponsor pipeline
2. Appropriate LTV level(51.75% at the end of the 9th fiscal period)
3. Certain payout ratio (82.3% in the 9th fiscal period)

Sponsor’s negative spreadConcerns that RJ Group will need a wider range of business capabilities
to cope with the transition from FIT to FIP and non-FIT, increase lost
profits due to the expansion of curtailment and continue “adverse market
conditions” due to the establishment of lease terms favorable to RJIF



Concerns that change of RJIF’s position within RJ Group anddeterioration of RJ Group's business performance due to “negative
spread” will become difficult to maintain leasing scheme and support asbefore, resulting in a decrease in distributions

CS Group can operate without “negative spread” by revising leasing
structure based on CFIS’s term and conditions.



Expansion of asset size, diversification of risk through regional
supplementation and control of lost profit by the installation of online
curtailment controller through the Merger will enable the Post-merger
Investment Fund to maintain and improve profitability and maintain andimprove the economics for RJIF unitholders.

Effect of expanding the size of assets through merger①Expected to increase its liquidity, raising unit price and increasing the probability of future public offerings.
②As the dominant opinion leader in the market, the Post-Merger Investment Fund will further contribute to solving various problems under thecurrent system, including lobbying the authorities.

25

3. Management Policy

26

11th, 12 th and 13 th FP Business Forecast
 Business Forecast
11th Fiscal Period(ending December 2022)

12th Fiscal Period(ending June 2023)

13th Fiscal Period(ending December 2023)

Statement of Income (million yen)
Operating revenues

3,725

3,689

3,705

Operating profit

1,404

1,397

1,409

Ordinary profit

1,190

1,193

1,208

Net profit

1,189

1,192

1,207

DPU (incl. distributions in excess of earnings)

3,750 yen

3,750 yen

3,750 yen

DPU (excl. distributions in excess of earnings)

3,077 yen

3,084 yen

3,123 yen

673 yen

666 yen

627 yenPer unit distributions in excess of earnings

CSIF expects to distribute JPY 3,750 per unit for the 11th to 13th FP with the aim of maintaining a stable andsustainable distribution payout(Note 1)
(Note 2)

Figures are rounded down to the nearest million yen.
Above forecasts are based on earnings summary dated August 16, 2022 and is subject to change due to factors including without limitation, acquisition or sale of renewableenergy projects, changes in infrastructure markets, fluctuation in interest rates and other changes in circumstances surrounding CSIF. Forecasts do not guarantee any
dividend amounts.

27

Historical and Forecasted Dividend
 CSIF has maintained stable distributions ever since it realized a distribution of JPY3,600 per unit for the 3rdFP DPU forecast for the 11th to 13th FP is JPY 3,750 and CSIF aims to achieve a stable and sustainabledistribution payout by utilizing distributions in excess of earnings

（yen）

4,500
4,000

3,600

3,500

3,650
577

3,700

3,700

708

601

1,340

3,000
2,500

3,650

1,817

3,700

3,750

924

848

2,000

3,750

3,750

3,750

673

666

627

3,077

3,084

3,123

11th FP(Forecast)

12th FP(Forecast)

13th FP(Forecast)

3,903
3,073

1,500
1,000

3,903

2,992

3,099

6th FP

7th FP

2,310

1,783

2,776

2,902

8th FP

9th FP

500
0

3rd FP

4th FP

5th FPDPU (excl. distributions in excess of earnings)(Note)

10th FPPer unit distributions in excess of earnings

Figures for the 11th to 13th Fiscal Period are forecasts and are subject to change. They do not represent guaranteed distribution amounts.

28

External Growth Strategy（Pipeline）(Pipeline including projects owned by JGIF and Bridge Fund, the numbers are as of June 30, 2022)

 Target to achieve ¥100Bn in asset size in medium term by mainly acquiring assets from abundant sponsor
pipeline

Operational and underconstruction

16 projects, 219.3MW

Under development

Total sponsor portfolio

15 projects, 156.6MW

31 projects, 375.9MW

 Pipeline snapshot
Fully taking advantage of vertically-integrated model to actively
develop new projects regardless of project size
By size (per asset)
50MW -

2

8

7

10MW - 50MW
5MW - 10MW3
11

2MW - 5MW Operational start year and status ofpipeline assets
（MW）

450
400
350
300
250
200
150
100
50
0

Operational

Under construction

Under development
375.9MW- 2MW

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

29

Abundant Pipeline Centered on Sponsor-Developed
Assets Assisting CSIF’s Growth● Operational● Under construction● Under development

Light blue box for
JGIF’s projects

Pink box for Bridge Fundprojects

Lower row in each box ; size (MW)/ FIT
price in JPY/ anticipated COD

CS Tottori Daisen Dai-ni PP
1.9 MW/11.49/2024

CS Gunma Takasaki KG PP
24.5 MW/14.49/2022

CS Shimane Hamada PP
1.9 MW/21/2022

CS Gunma CC PP
21.0 MW/11.99/2025

CS Fukuyama-shi PP
3.4 MW/40/2020
CS Hiroshima Suzuhari PP
17.8 MW/17.97/2022
CS Yamaguchi Hofu PP
8.0 MW/14.25/2023（as of June 30, 2022）

CS Hokkaido Bihoro PP
2.5 MW/18/2021
CS Aomori Maita PP
3.0 MW/10.89/2024
CS Miyagi Kami-machi PP
80.0 MW/10.76/2026

CS Gunma Minakami Dai-ni
PP 2.2 MW/18/2023

CS Shichikashuku-machi PP
9.2 MW/36/2020

CS Nagano Omachi PP
3.0 MW/10.14/2025

CS Fukushima Sabara PP
3.0 MW/10.79/2024
CS Azuma Kofuji PP
100.0 MW/36/2022

CS Yamaguchi Aiofutajima
1.2 MW/18/2022

CS Tochigi Kitsuregawa PP
1.2 MW/32/2023

CS Miyako-machi Saigawa PP
13.0 MW/36/2021

CS Ibaraki Kurusu PP
11.3 MW/24/2022

CS Fukuoka Tagawa PP
0.7 MW/18/2023

CS Higashikagawa PP
2.6 MW/18/2023

CS Oita Munechika PP
8.1 MW/32/2023

CS Ibaraki Takamihara PP
1.2 MW/11.99/2024

CS Higashikagawa Dai-ni PP
2.1 MW/18/2023

CS Ibaraki Kasama PP
13.5 MW/32/2021

CS Kumamoto Mashiki Dai-ni
PP 1.2 MW/18/2023

CS Okayama Shinyubara PP
29.9 MW/13.47/2025

CS Saitama Kumagaya PP
2.0 MW/18/2023

CS Kumamoto Yamato PP
1.5 MW/32/2019
Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

CS Kama-shi PP
2.2 MW/36/2017

CS Shizuoka Gotenba PP
2.0 MW/27/2023

30

Appendix

31

Canadian Solar Group’s Global Operations（1） Key achievements of Canadian Solar Group
Share of shipping
PV modules

2021 Global share
Top 5
Source: Pveye June 2022,
Vis On Press Co.,Ltd.

Operational solar power
plantsBankability

2020 #1 bankablesolar panel manufacturer(Solar module segment)

Source: Bloomberg New Energy
Finance 2020 Module Bankability
SurveyApprox. 800MW(panel output basis as of March
31, 2022)

Solar power plants underdevelopment or construction

Approx. 24GW

(panel output basis as of March
31, 2022)

 Canadian Solar Group’s history
 Founded in Ontario, Canada in 2001
 Listed on NASDAQ (CSIQ) in 2006
 Entered the Japan market in 2009 and establisheda proven track record for shipping PV modules

Over 67 GW
solar modules shipped

Module capacity 27.9 GW
Cell capacity 13.9 GW

24 GW project pipeline 27 GWh
energy project pipeline of CSIQ

Active buying customers
in more than 160
countries

Subsidiaries in 23
countries & regions on 6
continents

20 manufacturing facilities
in Asia & Americas Over 14,000 employees as of December 2021
 More than 67 GW of cumulative solar panels
shipped32

Canadian Solar Group’s Global Operations（2） Canadian Solar Group’s Global Operations
Module and System solutions (MSS) segment：17 countries
Energy segment ：19 countries
Solar panel factory：4 countries (16 factories)(As of March 31, 2022)
12

1

16
14

1
7
2

2

12

8

10

19

9
11

19

17

13

2

2
2

14

3

16

2

22

5
6
4
7
3 1

18

21
23

5

3

4

2 offices

6

Chile

15

1 office

25
24

6

1 Canada

20

2

11

Italy
Netherlands

25

15

16

India

1 office

1 office

17

China

14 offices

1 office

Thailand1 office

22 Vietnam

1 office

21

2

U.S.

4 offices7

U.K.

1 office

3

Mexico1 office

8

Germany

1 office

13 France

1 office

18

Taiwan1 office

23

Malaysia

1 office

4

Brazil1 office

9

Poland1 office

14

UAE

2 offices

19

Korea

1 office

24

Singapore

1 office

5 Columbia

1 office

10

Spain

1 office

15

South Africa

1 office

20

Japan

6 offices

25

Australia

2 offices

1233

Value Creation using the Sponsor Group’s VerticallyIntegrated Model (manufacturer, developer, AM・O&M)
Canadian Solar Infrastructure Fund, Inc.
Project owner

External
growthCanadian Solar Inc.
Manufacture PV modules

Capture continuous growth opportunities andcreate stable cash flow

Recoupdevelopment
funds

Same boat equity
Sponsor support

Canadian Solar Asset Management K.K.
Canadian Solar O&M Japan K.K.

Canadian Solar Projects K.K.

Solar power plant AM・O&M

Develop solar power plants

Vertically Integrated Business Model

Manufacturer

Developer
Operator

Asset Management
O&M provider

Canadian Solar Group34

Organizational Structure Identical structure as a typical J-REIT Our revenue is derived from rent income of solar energy projects
Canadian Solar Asset Management K.K.
Engaged in asset management in Canadian Solar
Infrastructure Fund, Inc.
 Established in June 2016

Asset
Management
Agreement

Canadian Solar Projects K.K. (Sponsor)(Sponsor / Operator)
 Engaged in construction and operation of solar energy
facilities
 Established in May 2014

Canadian Solar O&M Japan K.K.
Provides O&M services to solar energy facilities including
our currently-owned projects
 Established in June 2016


Asset Manager
SponsorSupportAgreement

EquityInterest

Sales of PV modules for use in residential and industrial
solar power systems
 Established in June 2009

Investment
Corporation(Fund)

Investors
EquityLoan
Agreements

Sponsor /Operator
O&M Service
Agreement

Lenders

Solar Energy
Projects
Lease /
Purchase
Agreements

O&M

Landowners

Lease / Operation
Agreement

Canadian Solar Japan K.K.


Distributions

Asset Management
Service Agreements

LesseeOperator
SPC, etc.

Utilities
PPAs /
Interconnection
Agreements

35

Asset List– Operational Result for 10 th FP(in thousand yen)No.

Project name

Basic Rent

Variable Rent andOther Revenues

Rental Expenses(incl. depreciation
expenses)

Depreciation
ExpensesProfits andlosses from therental business

S-01

CS Shibushi-shi Power Plant

18,4405,387

13,3559,539

10,473

S-02

CS Isa-shi Power Plant

14,095

5,707

11,625

7,924

8,177

S-03

CS Kasama-shi Power Plant

34,788

9,993

20,537

14,48324,245

S-04

CS Isa-shi Dai-ni Power Plant

29,06012,24923,822

16,533

17,487S-05

CS Yusui-cho Power Plant

26,4186,377

21,29014,358

11,505

S-06

CS Isa-shi Dai-san Power Plant

35,151

14,33829,271

19,97020,218S-07

CS Kasama-shi Dai-ni Power Plant

34,365

13,72426,256

17,604

21,834

S-08

CS Hiji-machi Power Plant

37,372

22,236

31,81522,162

27,793

S-09

CS Ashikita-machi Power Plant

35,20816,00829,463

20,301

21,753

S-10

CS Minamishimabara-shi Power Plant(East & West)62,52133,501

51,33135,397

44,692

S-11

CS Minano-machi Power Plant

34,981

10,801

23,718

16,21122,064

S-12

CS Kannami-cho Power Plant

19,347

9,032

15,297

9,662

13,081

S-13

CS Mashiki-machi Power Plant

654,533

369,157

483,056

338,329

540,634

S-14

CS Koriyama-shi Power Plant

7,962

4,165

6,279

4,191

5,849

S-15

CS Tsuyama-shi Power Plant

23,931

11,85019,145

13,146

16,63636

Asset List– Operational Result for 10 th FP(in thousand yen)

Rental Expenses(incl. depreciation
expenses)

Depreciation
ExpensesProfits and losses
from the rental
business

Project name

S-16

CS Ena-shi Power Plant

26,0005,789

26,224

14,510

5,565

S-17

CS Daisen-cho Power Plant(A)(B)

322,958

259,138

315,321214,569

266,774

S-18

CS Takayama-shi Power Plant

10,908-10,509

4,881

399

S-19

CS Misato-machi Power Plant

15,145

6,926

11,953

7,602

10,118S-20

CS Marumori-machi Power Plant

32,065

10,421

32,23917,05910,247

S-21

CS Izu-shi Power Plant

154,247

89,977135,161

87,776109,063

S-22

CS Ishikari Shinshinotsu-mura Power
Plant

21,38914,05021,394

12,995

14,046

S-23

CS Osaki-shi Kejonuma Power Plant

6,664

3,964

7,570

3,600

3,058

S-24

CS Hiji-machi Dai-ni Power Plant

851,537

470,888639,532

475,277

682,893

S-25

CS Ogawara-machi Power Plant

101,700

44,08484,44654,273

61,3382,610,799

1,449,775

2,090,621

1,452,362

1,969,953

Total

Basic Rent

Variable Rent andOther Revenues

No.

37

ESG Initiatives（Environment）
 In consideration of the environment, CSIF and the Canadian Solar Group contributes to theutilization of renewable energy through renewable energy investments.
 Incorporate measures to reduce environmental impact from manufacturing solar panels


The Canadian Solar Group is focused on reducing the environmental impact from solar panel manufacturing processes
such as greenhouse gases and industrial waste water and have achieved the following reductions in our environmental
impact from 2017 to 2021.
Reduction of greenhouse gas
emissions ( / kW)

Reduction of industrial water
consumption ( / MW)2017
Approx.

2017

156 ton-17%

2021
Approx.

130 tonApprox.

2,249 ton

2021

-53%

Approx.

1,059 ton

Source ： 「Sustainability Report 2021」 (Canadian Solar Inc.)

 Environmentally-conscious development and operation of CS Daisen-cho Power Plant

Given that Mount Daisen located near CS Daisen-cho Power Plant owned by CSIF, is in close proximity to an
ecosystem rich with forests, plants and wild birds, the Sponsor made efforts to refrain from using chain-saws whendeveloping the project to avoid damaging the habitat of rare species of indigenous falcons as well as painting the fence
around the site using camouflage colors.

38

ESG Initiatives（Social）
 Canadian Solar Group's relationship with local communities at Hiji-machi
In May 2017, the Sponsor supported a local fish releasing event of Hiji town near CS Hiji-machi Power Plant
and CS Hiji-machi Dai-Ni Power Plant as part of its efforts to protect local traditions and specialty products of
the area.

 Canadian Solar Group’s relationship with the local community around CS Daisen-cho
The Sponsor constructed the Daisen Canadian Garden and donated it to the Daisen-cho Town Government incommemoration of the completion of CS Daisen-cho Power Plant, now owned by the CSIF after development, andas part of its contribution to local communities in an effort to create harmony between nature and the large-scalesolar power plant. In addition, it repaired the Hima Jinja Shrine in the same town and donated an incense holder
made of white granite to the Shimpukuji Temple.

 Donation to Marumori-machi, Igu-gun, Miyagi prefecture where CS Marumori-machi is located

The sponsor and CSAM offered donations to the Marumori-machi Town Government. The town was severely
hit by Typhoon Hagibis in October 2019.
39

ESG Initiatives (Governance) Aligning the interest of unitholders with that of the SponsorWe aim to increase unitholders’ value by aligning the interest of unitholders with that of the sponsor.

Number of units held by the sponsor and holding ratio after the offering: 56,620 units （14.64%）
 Decision-making Procedures for Asset Purchase and Transfer Transactions with Related Parties


The Asset Manager has implemented measures in the Regulations for Related-Party Transactions to limit adverse effects inconnection with transactions with related parties such as Canadian Solar Group companies where conflicts of interest are highly likely
to emerge
Decision-Making Structure Concerning Transactions with Related Parties in connection with Asset Acquisitions and Transfers

Transactions with related parties(such transactions worth 5 billion yen or more)

Transactions with related parties(other transactions)

Drafting of asset acquisition and other plans by the
Acquisition Department

Drafting of asset acquisition and other plans by the
Acquisition Department

Approval by the Chief Compliance Officer(confirmation of the presence or absence of complianceproblems including the state of compliance with laws and
Send proposal backregulations)
Deliberation and resolution by the Compliance
Committee
Deliberation and resolution by theInvestment Management Committee
Deliberation and resolution by the Board of Directors of
the Asset Manager
Approval by the Board of Directors of the Investment
Corporation and Agreement by the Investment
Corporation

Rejection andsend proposal backRejection andsend proposal backRejection andsend proposal backRejection, disagreement
and send proposal backApproval by the Chief Compliance Officer(confirmation of the presence or absence of complianceproblems including the state of compliance with laws and
Send proposal backregulations)
Deliberation and resolution by the Compliance
Committee
Deliberation and resolution by theInvestment Management Committee
Approval by the Board of Directors of the Investment
Corporation and Agreement by the Investment
Corporation

Rejection andsend proposal backRejection andsend proposal backRejection, disagreement andsend proposal backReport to the Board of Directors of the Asset Manager

40

Status of Unitholders
 Unitholding (as at period-ended June 2022)
 By unitholding amount# ofInvestment
units:
386,656

 By unitholders■Individuals / others■Financial institutions

189,938（49.12%）(incl. financial instruments firms)

56,822（14.70%）■Domestic Corporates

84,225（21.78%）■Foreign entities & individuals 55,671（14.40%）

Name

# of
Unitholders:
18,489■Individuals / others■ Financial institutions

18,009（97.40%）■ Domestic Corporates

304 （ 1.64%）(incl. financial instruments firms)■ Foreign entities & individuals

Number of investment units
held (units)

52 （ 0.28%）
124 （ 0.67%）

Unitholding ratio to total
issued units (％)

1

Canadian Solar Projects K.K.

56,62014.64%

2

THE BANK OF NEW YORK

10,475

2.71%

3

THE BANK OF NEW YORK MELLON SA/NV 10

9,167

2.37%

4

SSBTC CLIENT ONMIBUS ACCOUNT

7,908

2.05%

5

The Bank of Fukuoka, Ltd.

7,790

2.01%

6

JP MORGAN CHASE BANK 385650

6,340

1.64%

7

The Rokinren Bank

6,223

1.61%

8

The Master Trust Bank of Japan, Ltd.

4,779

1.24%

9

Custody Bank of Japan, Ltd. (Trust Account)

4,547

1.18%

4,087

1.06%

117,93630.50%

10 JP MORGAN CHASE BANK 380646
Total(Note): Unitholding ratio is rounded down to the nearest hundredth.

41Balance Sheet for 10 th FP
 10th Fiscal Period (ended June 2022)
 Assets(in thousands of yen)

Current assets
Cash and bank deposit

5,082,280

Operating accounts receivable

1,148,662

Accounts receivable
Prepaid expenses
Consumption tax receivable
Other current assets
Total current assets

163,589
75,5136,470,046

Fixed assets

Accumulated depreciation
Total structures (net)
Machinery and equipment

1,055,391△171,352
884,038

Accumulated depreciation

42,434,266△7,330,697

Total machinery and equipment (net)35,103,568

Tools, equipment and supplies
Accumulated depreciation
Total tools, equipment and supplies (net)Land
Construction in progress
Structures in trust
Accumulated depreciation

591,024△102,728
488,296
4,505,944
6,569,721△319,920

Total structures in trust (net)6,249,801

Machinery and equipment in trust
Accumulated depreciation

20,291,246△1,126,547

Total machinery and equipment in trust (net)19,164,699

Tools, equipment and supplies in trust
Accumulated depreciation

93,540△5,114

Total tools, equipment and supplies in trust (net)88,425Land in trust

4,769,905

Total property and equipment

71,254,680

Intangible assets
Leasehold rights
SoftwareTotal intangible assets

Total fixed assets
Deferred assets
Investment corporation bond issuance cost
Total deferred assets
Total assets

Property and equipment
Structures

Investments and other assets
Long-term prepaid expenses
Capital investments
Deferred tax asset
Long-term deposits
Guarantee deposits
Total investments and other assets

1,156,923
2,761
1,159,685

 Liabilities and Net Assets

520,33510
12
15,60037,790573,747
72,988,113
17,701
17,701
79,475,861(in thousands of yen)

Current liabilities
69,739Operating accounts payable
Long-term borrowings to be repaid within 1 year
Accounts payable
Accrued expenses
Income taxes payable
Consumption taxes payable
Deposits received
Total current liabilities
Fixed liabilities

2,261,543
171,689
137,675852
148,202485
2,790,188

Investment corporation bondLong-term borrowings
Total fixed liabilities
Total liabilities
Unitholders’ equity

31,643,639
36,543,639
39,333,827

Unitholders’ capital
Amount deducted from Unitholders’ capital
Unitholders’ capital (net)
Surplus
Unappropriated retained earnings(accumulated deficit)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

4,900,000

40,631,004△1,998,255
38,632,749
1,509,284
1,509,284
40,142,034
40,142,034
79,475,861

42

Statement of Income for 10 th FP
 10th Fiscal Period (ended June 2022)(in thousands of yen)

Operating revenues
Rental revenues

4,060,575

Total operating revenue

4,060,575

Operating expenses
Rental expenses of renewable energy projects

2,090,621

Asset management fee

127,390

Administrative service fees

27,877

Director’s compensation

2,400

Tax and dues

65

Other operating expenses

68,261

Total operating expenses

2,316,616

Operating profit
Non-operating income
Interest income

1,743,958
26

Insurance proceeds-

Interest on refund
Other non-operating income
Total non-operating income
Non-operating expenses

3,259
3,285

Interest expenses

151,215Interest expenses on investment corporation bond

18,947

Amortization of investment corporation bond issuance
expenses

2,779

Borrowing-related expenses

37,730Investment unit issuance expenses-

Loss on retirement of fixed assets
Total non-operating expenses

26,635
237,310

Ordinary income

1,509,933

Income before income taxes

1,509,933

Income taxes
Income tax adjustments
Total income taxes
Net income
Profits brought forward
Unappropriated retained earnings(accumulated deficit)

856
4
861
1,509,072
211
1,509,284

43

Portfolio Assets (1)S-01 CS Shibushi-shi
Power Plant 1.2MW

S-02 CS Isa-shi
Power Plant 0.9MW

S-03 CS Kasama-shi
Power Plant 2.1MW

S-04 CS Isa-shi Dai-niPower Plant 2.0MW

S-05 CS Yusui-cho
Power Plant 1.7MW

S-06 CS Isa-shi Dai-sanPower Plant 2.2MW

S-07 CS Kasama-shi Dai-niPower Plant 2.1MW

S-08 CS Hiji-machi
Power Plant 2.6MW

S-09 CS Ashikita-machi
Power Plant 2.3MW

S-10 CS Minami Shimabara-shi
Power Plant(East & West) 3.9MW

S-11 CS Minano-machi
Power Plant 2.4MW

S-12 CS Kannami-cho
Power Plant 1.3MW

S-13 CS Mashiki-machi
Power Plant 47.7MW

S-14 CS Koriyama-shi
Power Plant 0.6MW

S-15 CS Tsuyama-shi
Power Plant 2.0MW

44

Portfolio Assets (2)S-16 CS Ena-shi
Power Plant 2.1MW

S-17 CS Daisen-choPower Plant (A&B) 27.3MW

S-18 CS Takayama-shi
Power Plant 1.0MW

S-19 CS Misato-machi
Power Plant 1.1MW

S-20 CS Marumori-machi
Power Plant 2.2MW

S-21 CS Izu-shi
Power Plant 10.7MW

S-22 CS Ishikari
Shinshinotsu-muraPower Plant 2.3MW

S-23 CS Osaki-shi Kejonuma
Power Plant 0.9MW

S-24 CS Hiji-machi Dai-niPower Plant 53.4MW

S-25 CS Ogawara-machi
Power Plant 7.5MW

45

Acquisition of assets from third-parties Acquired the asset shown below from a third-party source using a bridge fund. Given that preferential negotiationrights were obtained, CSIF will be able to acquire the power plant at an opportune timing In addition to acquire assets from the sponsor pipeline, CSIF intends to diversify property sources by using asset
manager’s proprietary network and acquiring from third-parties utilizing bridge funds
 Asset Overview

 Bridge fund scheme
Acquisition at timing of
CSIF’s direction

SellerBridge fundPreferencial
negotiationrights Diverse sourcing channels and methods
Kama-shi,

PP Name

CS Kama-shi PP

Location

O&M Provider

NEO

Power Output

1,750.0kW

EPC Service
ProviderNEO

Panel Output

2,242.9kW

FIT ProcurementPrice

36 yen/kWh

Inverter
Manufacturers

Hanwha Q
CELLS Japan Co.,Ltd.

Land Rights

Superficies

Supplier of Power
Conditioner

MEIDENSHACORPORATION

Hukuoka

Diversify sourcing
channels

Diverse asset
warehousing

Sponsor network

Utilize bridge
fund

Asset manager
proprietary network

Utilize JGIF launched
by Canadian solar
group

46

Leasing Structure based on Basic and Valuable rent
 Calculation method of basic rent and variable rent in anticipated projects to be acquired
Basic rentMonthly projected energy output (P50) ×(100－Y)% × 70% × FIT purchase price

Variable rent(Monthly actual energy output × (100－Y)% × FIT purchase price) － Basic rent

 Even if actual energy output is lower than projected energy output (P50), the operator will be able to receive basic rent from lessee
 If actual energy output exceeds 70% of projected energy output (P50), possible to obtain variable rent

 Diagram of rent structure
Projected revenue from sales of electricity(before deducting lessee’s operating costs andoperator compensation)
×Y％

Projected energy output (P50)
×FIT purchase price

Rental income of Canadian Solar
Infrastructure Fund, Inc.

Projected energy output (P50)
×FIT purchase price×(100-Y)%
Projected energy output (P50)
×FIT purchase price × X%

Variable rent
×Y％

Projected energy output (P50)
×FIT purchase price × X%
×(100-Y)%

Basic rent

Projected energy
output (P50)×X%

Projected energy
output (P50)

Note-1: Projected energy output (P50) is monthly predicted solar
energy output in lease term as described in technical reportNote-2: Y is percentage based on lessee’s operation cost and operator
compensation
Note-3: Negative variable rent is regarded as zero

Actual energy output

47

Stable and Balanced Cash Flow Distribution Policy
Supported by FIT System
 Cash distributions to CSIF’s unitholders for each fiscal period are calculated by multiplying the residual
free cash flow (“NCF”), which refers to free cash flow (“FCF”) minus debt interest payments, by a fixedratio, which is determined by CSIF for each fiscal period.
 Image of distribution in excess of earnings

Expenses ofleasingbusiness

Expenses ofleasingbusiness
Capitalexpenditure
Debt interest
Total rental
revenues

Debt interest
FCF made by
renewable energy facilities

Use forreinvestment

Debt
repayment
Retainedearnings
Residual FCF(NCF)

Revenue

Expenses

Residual FCF
×a fixed ratio

Cashdistribution

Distribution

Up to 60%of depreciation

Depreciation

Distribution inexcess of
earnings
Distribution
from profit

Net income

Breakdown

P/L

Note: The chart above is presented solely to facilitate a general understanding of the mechanism for cash distributions, and does not represent the ratio of our rental revenues or cash distributions inexcess of retained earnings. CSIF may decide not to make any amount of cash distributions in excess of retained earnings for a particular fiscal period, based on a consideration of factors such as
economic or renewable energy market conditions or financial conditions, among other factors, after taking into account of our financial situation and alternative uses of cash, such as the execution of
repair plans and capital expenditures, the repayment of borrowings and project acquisition opportunities. We may, in place of making cash distributions in excess of retained earnings, decide toacquire our own units.

48

Characteristics of PV Plant Revenue
 Forecastability of earning stability on a long-term basis
 FIT price and FIT period of our PV plants are binding in accordance with the Feed-in-Tariff system. Moreover, given that ourassets-under-management are set up so that we can capture basic rent from the lessee, we assume that any decline in rent
income won’t exceed a certain limit.
 Given that expenses on depreciable assets are largely fixed, earnings forecasts can be realistically projected for the long-term.

 Dynamics of PV plant revenue during FIT period
AmountOperatingrevenues

Operating revenues generally decrease gradually over the
medium to long term due to expected degradation of PV
modules.

Operatingexpenses

Depreciable asset tax, a large expense component,
decreases due to a straight-line-based depreciation, so
operating expenses generally decrease gradually over the
medium to long term, under the assumption that expenses
other than taxes on depreciable assets be largely fixed(including assumed regular maintenance costs).

Operating revenues
Operating expenses

Net income
Non-operating expenses

Time

Amortization payments of loan principal and interest rates
that are partially fixed generally cause non-operating
Non-operating expenses to decrease gradually over the medium to longexpensesterm given typical amortization schedules, as thesepayments are the primary component of nonoperating
expenses.

Note: The chart above is presented solely to facilitate a general understanding of the theory management considers in approaching the business of solar energy projects during the FIT period term. The
chart assumes the continuous operations of solar energy projects during the FIT period term under normalized conditions, with no extraordinary events, including additional acquisitions or dispositionsof projects, or expenses or changes in the operating or regulatory environment. Actual results may vary significantly depending on the particular features and circumstances of infrastructure funds, aswell as unexpected events or changes or the realization of various risks. You should not rely on this model to predict the outcome of our operating revenues, operating expenses, non-operating
expenses or net income.

49

Overview of Output Curtailment
 In order for electric power companies in each region to stabilize the supply of electricity, each company curtails the output of power generators to control
supply in the event that the supply of electricity in its grid largely exceeds demand.
 Output curtailment of each energy source is implemented according to the priority electric supply dispatch rule. According to this rule, solar energy output iscurtailed after thermal and biomass energy generation, pumped-storage hydroelectric energy generation, charging of storage batteries for adjusting supply
and demand, and electricity is supplied outside the area through interconnection.
 Furthermore, output curtailment is equally distributed by introducing a rule that sets the priority of output curtailment by group. By reducing the burden of
output curtailment on all solar power plants, it is expected that output curtailment will be equally distributed even if solar power plants installed with curtailment
controllers will be curtailed less than solar power plants without curtailment controllers.

 Generic output curtailment scenario

 Rules on output curtailment~Priority electric supply dispatch rule~

Curtail thermal, pumped-storage hydroelectric energy generation charging of

1 storage batteries for adjusting supply and demand

Volume ofgenerated electricity

2 Supply electricity outside the area through interconnection

Curtailment of solar
and wind generators

3 Curtailment of biomass energy generation
4 Supply curtailment of local biomass energy generation
Curtail natural variable renewable energy generation

5 (solar and wind power)

Instruction provided by Organization for Cross-regional Coordination ofElectricity
demand6 Transmission Operators

Curtailment of long-term fixed power source energy generation (nuclear,

7 hydro and geothermal power)

Thermal power generation adjusted to the output
levels of solar and wind power
Geothermal and hydroelectric power generation(excluding pumped-storage hydroelectric power generation)
Nuclear power
Midnight

Morning

Noon

Afternoon

Midnight

Output curtailment volume~Concept of output curtailment by group~Group EGroup GGroup B

Group DGroup GGroup B

Group AGroup CGroup F

Group AGroup E

Day 1

Day 2

Day 3

Day 4

Day X

…

Group F

Source: Compiled by CSAM based on the “Operational Policy on Power Transmission andDistribution” by the Organization for Cross-regional Coordination of Transmission
Operators and “Guideline on Fairness of Output Curtailment (formulated on March
2017, amended Oct 2019)” by METI’s Agency for Natural Resources and Energy

50Disclaimer• This document has been prepared to provide information, and is not for soliciting and inviting investments in or recommendingtransaction of certain products. We request investors to make investments with their own responsibility and judgment.
• This document does not constitute a disclosure document or a management report based on the Financial Instruments andExchange Act, the Act on Investment Trusts and Investment Corporations or the listing regulations of the Tokyo Stock Exchange.
• In addition to information on Canadian Solar Infrastructure Fund, Inc. (the "Investment Corporation"), this document includes
figures, tables and data prepared by Canadian Solar Asset Management K.K. (the "Asset Manager") based on data/index and otherinformation released by third parties. Analysis, judgment and other views of the Asset Manager on such information at the time of
preparation are also included in this document.
• The information contained in this document is not audited and there is no assurance of the accuracy and certainty of suchinformation. Analysis, judgment and other non-factual views of the Asset Manager represent views of the Asset Manager at thispoint in time. Different views may exist or the Asset Manager may change its views in the future.
• Figures under the same items of other disclosed materials may differ from figures presented in this document due to difference inthe rounding of fractions, etc.
• While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors. Readers arealso cautioned that the contents of this document may be corrected or changed without prior notice.
• The Investment Corporation and the Asset Manager assume no responsibility for the accuracy of data, indexes and otherinformation released by third parties.
• This document includes statements regarding future policies, etc. of the Investment Corporation. However, these statements do notguarantee said future policies, etc.
• For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.

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